Swiss chip maker STMicroelectronics NV (NYSE:STM) said Tuesday its fourth-quarter profit surged 51 percent from last year, despite what the company characterized as a “more pronounced than forecasted” market correction. Net income for the quarter was $276 million, or 30 cents per share, up from $183 million, or 20 cents per share, last year. Revenue for the quarter was $2.48 billion, up 4 percent from $2.39 billion last year.
Analysts polled by Thomson Financial expected the company to post earnings, on average of 21 cents per share on $2.56 billion in revenue.
“Looking at the fourth quarter and near-term environment, the current market correction underway in some of the key applications we serve is more pronounced than forecasted,” said President and Chief Executive Officer Carlo Bozotti.
Sounds to us like Mr. Bozotti needs to look for better forecasts.
STM 1-yr chart: